Kerkorian Takes His Bat and Ball Home

10 October 2006

BEVERLEY HILLS: Tracinda, the investment vehicle of US corporate raider Kirk Kerkorian, has removed its representative Jerry York from the board of General Motors in the wake of the automaker's decision to cease alliance talks with Renault and Nissan [WARC News: 05-Oct-06].

In his resignation letter to GM, York states his "grave reservations" about GM's capability to compete against its Asian competitors, adding: "I have not found an environment in the boardroom that is very receptive to probing much beyond the materials provided by management."

In a regulatory filing last Friday Tracinda charged GM with "abruptly" announcing the end of the discussions before its board had obtained an independent evaluation of the proposed alliance.

GM's riposte? "The best way to drive value is to continue to remain focused and vigilant in our stated turnaround programme."

Data sourced from Financial Times Online; additional content by WARC staff